From today's Central Valley Business Times:
John Rubino is convinced the current retreat in the nation’s housing market has all the signs of a bubble that’s bursting.
Mr. Rubino, a financial writer and advisor, says the bursting could be so severe, that it might trigger if not an actual depression, at least a recession in the United States.
What we’ve ended up with is a classic bubble … with prices being far higher than the average family can afford, especially on the coasts,” he says in a CVBT interview. “It’s very possible a housing bust in 2007 turns into a general recession. You have the real danger of this snowballing into a serious, economy-wide, problem
http://tinyurl.com/gxglq
Tuesday, October 03, 2006
Housing bubble collapse could trigger major depression
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This is part of the way it works out in this book I just finished called "The Second Great Depression - Starting in 2007, Ending 2020"
http://tinyurl.com/nrqbo
It is a very pessimistic view of our situation....but another book I am in the middle of: "Three Billion New Capitalists" seems to bring up very similar ideas, but has a slightly less drastic end. (still not a pretty end)
http://tinyurl.com/mcfjb
I guess the lesson to all of this is to become an active asset manager, and keep your eyes open for the edge. (so that we can keep ourselves from falling over it)
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